Global Imbalances: The Role of Emerging Asia

18 Pages Posted: 15 Oct 2009

See all articles by Pietro Cova

Pietro Cova

Bank of Italy

Massimiliano Pisani

Bank of Italy

Alessandro Rebucci

Johns Hopkins University - Carey Business School; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

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Abstract

This paper investigates the role played by emerging Asia in the emergence and evolution of the global trade imbalances. Based on simulations in a general-equilibrium model of the world economy, we find that a productivity slowdown in the nontradable sector of these economies in the second half of the 1990s fits regional macroeconomic developments relatively well, but has limited spillover effect to the United States trade balance. In contrast, an increase in the desired level of emerging Asia net foreign assets starting in 2001 not only fits regional developments relatively well, but also has a significant spillover effect to the United States.

Suggested Citation

Cova, Pietro and Pisani, Massimiliano and Rebucci, Alessandro, Global Imbalances: The Role of Emerging Asia. Review of International Economics, Vol. 17, Issue 4, pp. 716-733, September 2009, Available at SSRN: https://ssrn.com/abstract=1489034 or http://dx.doi.org/10.1111/j.1467-9396.2009.00845.x

Pietro Cova (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Massimiliano Pisani

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Alessandro Rebucci

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States

HOME PAGE: http://carey.jhu.edu/faculty-research/faculty-directory/alessandro-rebucci-phd

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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